U.S. Rep. Austin Scott files bill to curb Obama Phone spending

FCC plans to hike phone program spending by $725 million to reach $2.5 billion

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By Staff Reports

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WASHINGTON — U.S. Rep. Austin Scott, R-Tifton, has introduced a bill titled the Controlling the Unchecked and Reckless Ballooning of Lifeline (CURB) Act of 2016, which he says would make significant reforms to the Lifeline Program.

“I have been fighting to end the unchecked spending and lack of accountability in the Lifeline Program since I came to Congress,” Scott said about the proposed legislation he filed Thursday. “While the program’s original purpose had merit, the program in its current form is wrought with fraud and abuse, and its past time for Washington to respond to the calls of our constituents to rein this program in.”

Created in 1985 during the Reagan administration, Scott said the program has ballooned in scope and that its unchecked spending is rife with fraud and abuse.

Scott said the original intent of the program, administered by the FCC and created under the Federal Universal Service fund, to help provide telecommunications services to consumers, including low-income consumers, at affordable rates.

“American citizens, who are all too familiar with ‘Obama Phones,’ understand this and can agree that it is simple good governance to ensure we are curbing wasteful spending while also promoting accountability across the federal government,” Scott said. “We have a responsibility to the American citizens to practice the same spending discipline they would in their own homes.”

The FCC intends to issue an order at the end of this month that will increase the budget for the Lifeline Program to $2.5 billion, an increase of $725 million from the current budget level. Scott’s legislation would cap Lifeline’s budget at $1.5 billion.

Scott said the cap would protect consumers whose pay the Federal Universal Service Fee to fund the Lifeline program from increased costs caused by FCC action. He said his bill would phase out the mobile-voice-only “Obama Phone” program, and prohibit Lifeline funds from being used to purchase or subsidize of devices including smartphones, tablets and laptops.

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